CSR sweetens Pepsi and Coke – A Tale of Two Colas

Don’t look now but there is a seismic change taking place in how companies do business, how they interact with their customers and how their product or service is branded. Resting on what was learned in the 1990’s no longer holds much application in today’s market, (or more specifically a world) where the changes in awareness, choice and economic stability have all converged into higher expectations as consumers and citizens. The resultant expectation is that we as consumers want to do business with companies that are ethical and display a commitment to positive social change, whether that’s in their own neighbourhood or making tangible contributions to an environmental cause. Ten years ago most companies simply reacted to consumer complaints and made adjustments to soothe the risk of negative press. There were few companies (we are proud to say we are one of them) that took on a corporate social responsibility (CSR) policy in a fashion which addressed such matters in advance, and made their CSR part of the platform upon which they conducted business. The change that is now occurring is seeing companies take a planned approach to CSR and using social media and their marketing to display their corporate tendencies and initiatives, partly to remain competitive and more simply because it’s the right thing to do.

The days when CSR was used as a tool to combat otherwise negative press has been turned around, it doesn’t exist simply as a means to safeguard a company against being accused of bad internal practices. Now companies view CSR as an innovative tool that explains where they stand and how their customers can help to make a real difference by selecting them as their provider or partner in business. It has finally made the upgrade to being about the 3 tiered goal that was always the aim of such practicies showing measured concerns for people, planet and profit. Coinciding quite nicely with the increased importance of CSR is the rapid growth in social media and found that many companies are already using social marketing in creative ways that accomplish rapid and influential results.

For example the two largest soft drinks corporations on the planet have both made a giant commitment to CSR via social media in recent months, with both cases providing participation (and therefore results) that support the decisions to engage your customers and rack up the three-fold benefits I mentioned above. You’ve probably guessed that I’m referring to Coca-Cola and Pepsi who occupy spots # 1 and 2 in the global market and their unique programs both indicate that the cola colossus companies planned well.

Pepsi took the first steps in December and Coca-Cola probably not coincidentally followed a few months later, you might say they ‘took the Pepsi challenge’.  Pepsi’s channeled a remarkable $20 million into their program which I will explain in the next post and the commitment by Coca-Cola is equally staggering. These are by no means the only CSR actions taken by the pair but each represents the largest single commitment and both are wrapped up in the success and importance of social media. I’d call it a calculated risk to bank on social media playing a huge part in a campaign linked to a global brand and not the ‘huge gamble’ as it was portrayed by some industry insiders.

Part 2 of our ‘Tale of Two Colas’ later this week as we profile Pepsi and their newest program.